Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1887-10-24
TO SUE GOULD AND SAGE.
An Accounting Asked for SO, 900, OOO-For
eign Bondholders claim to Have Beef
swindled to that Amount.

An Accounting Asksd for $4,000, OOo-For
eign Bondholders claim to Have Beer
swindled to that Amount.
NEW YORK, Oct. 18.-The papers have
been drawn for suit which Lawyer W
81. De Lancey says will soon be begun II
the Supreme court against Jay Gould ant
Russell Sage, trustees, by Adrian Stoop
Jan Otto willem and Fran z Rens, foreign
holders OF S34, 900 of Kansas Pacific consol
idated bonds, to compel an accounting o
the trust Of Denver Pacific bonds, about
which the Pacific Railroad commission
took good deal of testimony. The sui
| is on the same lines as one begun fOI
American bondholders by Mr.. De Lancey,
but settled without trial.
The complaint, which is long and elo-
Quent, is founded on the tes rimony re-
ferred to. It sets forth that the trustees
named betrayed their trust and pocketeC
the trust funds, and are accountable fol
about Sc. 10000 to the bondholders, and
asks that they be removed, and that re-
ceiver be appointed for the assets of the
trust.
1t is slleged in the complaint that in
1879 a general mortgage WAS made. Gov
eripg sill the roads, rolling stock and
other property of the Kansas Pacific
Railroad, and that Jay Gould and Russell
Sage were made trustees. The Kansas
Pacific put up $4,000, 600 of Denver
Pacific stock as security for the bonds.
Jay Gould, Russell Sage and Sidney Dill
Ion were directors of both the Kansas
Pacific and Denver Pacific, and controlled
the boards.
It is alleged that they conspired to get
the Denver Pacific stock back to the Kan
sss Pacific treasury by collusive suit, on
the plea that it was nearly worthless,
knowing that it would jump from 10 up
above par, because they had already ar
ranged for its consolidation with Union
Pacific and Kansas Pacific stocks; that
they deceived the court and divided the
stock. The foreign oondholders say that
this proceeding deprived them OF the con-
tracted security of their mortgage bonds.
Manager De Lency says criminal pro-
ceedings will also be Instituted against
Mr. Gould and Mr.. Sage, and to this end
the following correspondence passed be-
tween Mr.. De Lancy and E. EllerY An
derson of the Pacidc Railway InVesti-
eating Commission:
HI GLACty aAuC1oODJ 1DScA OA1
would request copy of the printed
records of the proceedings had before the
Pacific Railway Commission for the pur-
pose of laying the game before the dis
trict attorney Of New York county, with
a view of the enforcement of the provis-
ions OF the penal code, relating to trus-
tees, against Jay Gould and Russell Sage.
An early answer will oblige. Yours, re-
spectfully, WILLIAM 81. DE LANCEY.
William H. De Lancey, 81 Broadway,
City. Dear Sir--I have your note of this
date. respectfully refer you to the last
clause Of section 2, of the act Of March
s, 1887, under which the United States
Pacific Railway Commission is es-
tablished. l. is provided that the
evidence or testimony taken bsfore US
shall rot be used against the person 50
testifying on the trial Of any proceeding.
[ don'G think that the commission car,
within the fair meaning and spirit Of the
provision quoted, furnish you with the
printed record OF our proceedings "with
view to the enforcement of the proviS-
ions of the penal code relating to trus-
tees against Jay Gould and Russell
Sage" Yours very respectfully,
E. ELLERY ANDERSON.
The plaintiffs sue on behelf of them
selves and any bondhOlders who like TO
IOin them ass